All Forum Posts by: Eric Black

Hi Eric,

This is an ongoing debate and you'll have people on both sides of the aisle on this one. Some answer every call to make sure they don't miss a lead. Others screen all calls to avoid wasting time with angry homeowners or those who just want to be removed from their list.

I would recommend trying one approach for awhile, then try the other and see which one works best for you.

Cheers!

Eric

Hi Sandra,

As Ned said, it's not going to be "easy" on all rental properties but it is possible. I would recommend calling around to local lenders to see if any of them do "delayed financing." This is where you can refinance immediately after purchasing the property. There are not a whole lot of lenders out there who do it but you can find them if you spend the time calling around.

Cheers!

Eric

Hi Cordell,

Our policy has always been that it's the tenant's responsibility to pay for any security services. I would never be opposed to them having one installed because then you'll always have a security system available which can be a good marketing point.

The only potential downside is often times these security companies require a 2-3 year contract. If your tenants are not planning on staying that long then they'll either be responsible for cancelling the contract early, you'll have to pick up the remaining part of the contract or they'll have to transfer the service to their new residence.

Cheers!

Eric

Hi J

Yeah, I'd be surprised too if our PM called and said they had filled a vacancy without contacting us first. I don't know if there's a true standard but every PM we have used has always called us to give us an update and confirm our approval for the applicant.

@Mark Doyle  That would explain it, and primarily just the stove. For some reason they don't care if there's no dishwasher, microwave or refrigerator. 

The only pitfall with your plan is that many lenders will require you to have owned the property for a period of time, often 12 months, before they will be willing to refinance. That being said, I would start calling lenders now, especially smaller local banks in your area and discussing the situation with them. Some lenders will do what is called "delayed financing" which is basically what you're talking about. You could buy the property cash, stick a cheap stove in the kitchen and then get your financing. Be sure to ask the lender which appliances they require.

@Joe VilleneuveI would disagree. Homepath will list a property as a "First Look" property for a period of time which is only open to owner occupants as you said, to encourage a homeowner to purchase it. If that time passes then they open it up to investors. Requiring a cash purchase actually eliminates more owner occupants than investors. I would venture to guess it has more to do with the amount of work that is needed.

Hi Mark,

There are certain things that will make a property "non-financeable". Some of these items may include; missing major appliances such as range, water heater, etc., missing or exposed wiring, missing plumbing or plumbing fixtures such as toilets, faucets, etc. or anything considered to be a "health and safety issue". Chances are there are one or more of these items which are causing it to be a cash-only purchase. And you are correct, 203k loans are only available to owner occupants, not to investors.

Cheers!

Eric

Hi Brendan,

The VA funding fee is based on the base loan amount. So the base loan amount plus the funding fee is the total amount financed (total loan amount).

Hope this helps!

Cheers!

Eric

@Ryan K.  Yep. We've run into this as well. It may not identify small, slow leaks but you'll know there's nothing major.

Hi Rebecca,

Unfortunately this is a very complex situation and no one will be able to give you a straight forward, black and white answer without knowing a lot more specifics. 

The short answer is, it is going to be extremely difficult, almost impossible, to get FHA financing on this property. Simply removing the stove and plastering the hole won't necessarily make it a financeable property.

You'll need to decide if you want to jump through all of the hoops and pay for an appraisal for a long shot like this. If you decide to just be prepared for a bumpy road.

Best of luck!

Eric